What's Happening?
Reliance Jio and Bharti Airtel, two of India's largest telecommunications companies, have discontinued entry-level prepaid plans to capitalize on increasing data consumption. Jio has removed a plan costing 249 Indian rupees ($2.84) from online platforms, while Airtel has phased out its basic plan entirely. This move reflects a growing consumer preference for larger data packs, driven by the widespread availability of 5G technology. The companies aim to increase average revenue per user (ARPU) by encouraging customers to opt for premium plans with higher data limits. Jio reported an ARPU of INR208.7 ($2.38), while Airtel's was INR250 ($2.85) for the quarter ending June 2025.
AD
Why It's Important?
The strategic shift by Jio and Airtel to discontinue basic prepaid plans highlights the evolving landscape of the telecommunications industry, where data consumption is rapidly increasing. By focusing on premium plans, these companies are positioning themselves to enhance revenue streams and close the ARPU gap. This trend is indicative of a broader industry move towards maximizing profitability through data-centric offerings. As 5G penetration continues to grow, the demand for larger data bundles is expected to rise, potentially leading to increased competition among telcos to capture market share.
Beyond the Headlines
The decision to phase out entry-level plans may have implications for consumers who rely on affordable data options. As telcos shift towards premium offerings, there could be a segment of the population that finds it challenging to access affordable data services. This raises questions about digital inclusivity and the potential need for regulatory oversight to ensure equitable access to telecommunications services.
